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Burt Flickinger III, president of retail consultancy Strategic Resource Group says it's key for grocers to make sure they offer the freshest strawberries, cabbage and the like since produce carries 50 percent higher profit margins than canned fruits and vegetables. It also adds a halo to the store brand and fosters shopper loyalty. "Consumers don't have confidence in Wal-Mart's fresh produce the way they have confidence in Whole Foods, Costco and other competitors," says Flickinger. He and others say that a big factor is that Wal-Mart has cut so much store staff that it doesn't have as many workers to stock the shelves in a timely manner. During the call with reporters Monday, Sinclair said that he feels comfortable with the staffing and constantly reviews the issue. Wal-Mart said Monday it has hired produce experts to work directly with farmers in the key growing regions where the company has produce-buying offices. By eliminating middlemen, Wal-Mart has been able to eliminate one day that the produce is in transit. It said the results from the independent weekly checks will be reported to all levels of store management. Through this program, Wal-Mart said it's benchmarking itself with rivals weekly. It also says it plans to promote in ad campaigns its existing 100 percent money back guarantee program that allows shoppers who are not satisfied with their produce to get a cash refund- provided they have a receipt. Shoppers don't have to return the produce to get the refund. Shares of Wal-Mart rose 73 cents to $75.57, near the high end of their 52-week range of $65.40 to $79.96.
[Associated
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